Using Currencies to Trade on China's Growth

Chinese stocks have started off 2012 with a bang, and this strategist says that means good things for nearby currencies.

"We are seeing some encouraging signs of Chinese equities trying to base out after much of Q4, when they were getting hit rather hard," says MacNeil Curry, chief global rates and foreign exchange technical strategist at Bank of America Merrill Lynch .

That's nice for holders of Chinese stocks, of course, and Curry told CNBC's Simon Hobbs that it's also good for Asian currencies like the South Korean won and the Singapore dollar.

The Singapore dollar is particularly interesting in technical terms, Curry says: "If you look at the U.S. dollar-Singapore dollar pair, that has put in a nice triple top formation."

So Curry thinks it's time to sell the greenback against the Singapore dollar.

He would enter the trade at 1.2860 with a stop at 1.2960, adding, "we could see it move to 1.24 and change over the course of the next several weeks or next several months as investors take a more positive outlook."